To tell you the truth I’m a little confused. I get that if the judge approves a new company will be formed, but when can we expect the first concrete moves of the leadership? Will they lay out some plan of changes or will the same policies of keeping the workers in the dark still be present?
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Sears' name is mud in China. Its name has been dragged back and forth as an example of American bad acting in Chinese social media.
Then Sears hasn’t figured that out yet, due to idiocy in all likelihood. It has been repeatedly stated that the small appliance people are only replinishing a select few stores. I can only assume that that is indicative of supply/vendor problems, especially considering that a fair amount of them are also backordered.
Small appliances are a dime a dozen. Hop on Alibaba. Most will private brand. All Sears has to do is slap Kenmore on them.
Most likely it is because they’re trying to work with things out Whirlpool again. They don’t have any issues getting their private branded stuff in, ovation mixes come in and sell out. This isn’t the biggest t8me of year for small appliances, it’s bedding mattresses and large appliances going into tax season. Most likely they’re going to change up vendors one Eddie is in full control. None of the vendors that filed reclamation were big small appliance vendors so they’re either changing where they’re distributing from or simply waiting things out.
Or, maybe, hear me out, the distribution network is still set up to supply 800+ stores, not the 500 or so currently being supplied, or the 425 that will still be open 2 months from now. While it is entirely possible that the vendor relationships have been ruined (this is almost certainly the main reason), it is also true that they’ve quietly been closing RRCs for years now, because there simply isn’t enough density in the store netowrk anymore to support the number of RRCs still open.
As a side note, there are definitely admitted shortages of small appliances. I don’t know what the actual reason is, but I’d hazard a guess that it is a combination of p-ss-d vendors and an inability to find replacements, because unlike the majority of SL vendors, small appliance vendors aren’t a dime a dozen.
The deal for tires did not involve Amazon providing anything other than a glorified scheduling system. Customers could schedule the appointment adn buy the tires from Sears via Amazon, then take their car to Sears and have the tires put on. Amazon wasn’t providing product and had no real skin in the game.
@1hxp The 'relationship with Amazon for tires' had nothing to do with Sears actually managing to have tires in stock themselves. The idea is/was that an Amazon customer could order tires from Amazon and have them delivered to and installed at a Sears Auto location. Sears Auto had already lost the ability to stock/order most decent tire brands themselves by the time the Amazon thing was announced.
Sears is just shorthand for Sears Holdings, formerly known as Kmart
Since softlines and tires are both super profitable segments that don't require much turnover, that tells me Eddie completely ruined relationships with all vendors of note. Wasn't it just last year that Eddie inked that agreement with Amazon for tires?
You sure? Because I haven't seen jack about Kmart here or anywhere.
Kmarts have been talked about the whole time. People are just too lazy to type them out.
Probably be easier to just shut down the Kmarts. After all, Eddie wanted the proprieties above all else, not the business.
Actually, they haven't mention at all how they are going to handle the Kmarts yet have they? All they have been talking about is Sears.
@1oln Do you expect Kmart stores to close or be converted to Sears?
Just look at the reworked store in Oak Brook, Illinois. That was the plan all along.
With no debt and only profitable stores, you can expect every Sears to be redone in that format over time.
I’d also expect that the Kmart brand may go away and be replaced with just Sears.
Soft lines and such will be downscaled; appliances, Kenmore and Craftsman will dominate.
“Docket 1720 on prime clerk list 3 closings all distribution centers. What does that tell you.”
The 3 properties are RRCs (440, 443 and 447) that primarily replenished softlines, tires, and small appliances. Take that however you want but it indicates they are moving away from those products (which they should have done 10 years ago).
Docket 1720 on prime clerk list 3 closings all distribution centers. What does that tell you.
The old Sears was Sears Holdings, a publicly company substantially owned by ESL
The new Sears will be Transform Holdings, a private company wholly owned ESL subsidiary.
See the difference?
In any normal Ch 11 restructuring you'd see a company making major moves to ensure that they'd survive after the reorg with a plan of action they're telegraphing to the world with the rosiest of PowerPoints and press releases to build confidence in the new company. All the vendors and creditors would have a united front because if the company fails, they'd all lose big. Lean, mean, and ready to take on the world with a carefully controlled message to rally the troops internally as well. Then there's Eddie.
Meet the new boss, same as the old boss.
If/when the bid is approved and a purchase agreement is ratified by the courts you may not see any changes. A privately held company is not bound to operational and financial transparency like a public company is.
Never its Eddie some old crooked CEO. The only leadership will be him selling off Sears now
The "new" leadership and owner would would be Eddie, same as the old.
Sale closes 2/10. Layoffs of and elimination of retail district staff probably go through prior to that, so that it appears it isn’t Eddie doing it. As for other changes? Who knows. This all assumes the Judge approves the deal, which I think he will, but it’s all still up in the air at this point